Why More Renters Are Opting Out of Ownership

One in five renters expect to continue renting for life, a recent Entrata study shows. And the reasons why might not be so obvious.

A house on the corner with a white picket fence and a backyard has long been a big part of the American Dream. But it’s no longer a major factor for a large share of the American populous.

Lew Sichelman
Lew Sichelman

For two out of every five renters, in fact, their “American Dream” has nothing to do with owning a house, according to a recent Entrata study. And one in five expect to be renters for life.

Entrata’s survey, conducted in January alongside Method Research and PureSpectrum, gathered the consensus of 2,000 respondents living in large apartment communities. The study’s findings show an evolution in consumer psychology away from the idea that homeownership is the only path towards reaching the good-ol’ American idea of nirvana.

Residents are proud of where they live and enjoy being a part of their rental communities, according to Entrata. Further, they enjoy the flexibility that apartment living affords them and not being tied down to a mortgage.

Experiences are at the “core of the new American Dream,” Entrata CEO Adam Edmunds said in prepared remarks, “and renters are making the most of them.”

The reasons behind renting

Almost two-thirds of those surveyed said that they believe their quality of life is similar to, or better than, their parents’ at the same age. And more than a third said that being a renter gives them a better opportunity to chase their career dreams than if they were homeowners.

Indeed, two-thirds are happy with the paths their careers are on and three in four said that renting allows them to pursue their career goals.

Apartment living provides the kind of flexibility renters desire, career wise as well as socially, respondents indicated. Two-thirds of the renters queried told pollsters that renting fits their current lifestyle more than owning.

Money doesn’t seem to be an obstacle, either, the survey discovered. Nearly half of the respondents said renting as opposed to owning allows them to pursue their hobbies. Renters are able to have their needs fulfilled within their communities.

And renters are not ashamed that they haven’t joined the ranks of homeowners, the survey found. In fact, renters not only seem to be proud of where they live, but they also are good neighbors. They enjoy the communal aspect of apartment living.

Some 40 percent of renters told Entrata that they have used the communal spaces in their properties for social gatherings and 29 percent said they’d be interested in doing so on a monthly basis. Furthermore, 34 percent said that friends or family visit them in their apartment homes at least once a month.

Fences may make good neighbors when it comes to individual houses, but people who live in apartment communities can make great company too. Two-thirds of respondents said they’ve helped other residents in one way or another, and almost that many said that neighbors have helped them out too.